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Whether you’re looking at flipping a property or expanding your portfolio – property auctions can be a great place to secure a bargain. Buying a house at auction is always a quicker, more straightforward way to purchase a property.
Essentially a sale at a public auction allows interested buyers to compete to win the auction by placing bids against each other. The highest bidder secures the property, as long as their bid meets the reserve price. For buyers, this means you could strike it lucky and secure a house for below the market value (but above the minimum reserve price). For sellers, this means you can avoid the process of offers and counter-offers, adverse surveys and inefficient conveyancing and let the market decide.
At Auction House Leicestershire, we’re well known for our expertise in Leicester property auctions, which gives buyers and sellers the confidence that they’re in good hands when attending our house auctions. If you’re considering a property auction, you’ll find everything you need to know about the process below.
How property auctions work
We offer, “traditional” unconditional auctions, both Livestream and online and are part of Auction House UK, the UK’s largest auction house.
A traditional property auction tends to attract cash buyers. All bids are legally binding, and if you win the auction, you must pay a deposit and contracts are exchanged immediately. The purchase must be completed within the completion timescale being set by the auctioneers client.
Before the property auction
Regardless of the auction type, there are a few steps prospective buyers can take before they purchase at auction.
- Find your property
Most properties are listed online by an estate agent or auction house around a month before the auction date. As soon as you find one you like the look of, get in touch and arrange a viewing. - Do your due diligence
Not only is it worthwhile seeing the property in person, but you should also research the estate agent or auction house that you’ll be buying through. Avoid those with a bad reputation – after all, this is a huge investment. - Enlist a solicitor
We always recommend having a solicitor study the small print within the legal pack that will be hosted online by the auctioneer, before buying a house through auction. You risk losing your deposit if you change your mind post-auction and will be liable for any additional costs incurred by the seller. - Get comfortable with the process
Don’t wait until the big day to experience an auction. Log on to another house auction and see how it’s done. By understanding the process, you’ll feel more confident and shake off some of those auction-day jitters.
On the property auction day
On the day of the action, the estate agent or property auctioneer will talk you through the process. Interested buyers will be invited to bid in quick succession. Bidding can be over the phone, online or by way of a proxy bid.
The winner of the auction will be the highest bidder who exceeds the reserve price. If the reserve is not met, the property will not be sold. However, if you’ve bid successfully, you’ll move on to the next step, which is paying a deposit or reservation fee – usually around 10% of the agreed sale price. Often there are other costs you’ll also need to include, such as auctioneer’s fees, which will be detailed in the auctioneer’s marketing material and within the special conditions of sale within the legal pack.
Following this you’ve got anywhere from 14 days up to six weeks to get your paperwork in order, complete the sale and pay the remaining balance. It’s very important to make sure that you’ve understood those timeframes and dates prior to bidding!
Sell your Property at Online Auction with Auction House Leicestershire
Whether you’re interested in residential or commercial properties in Leicestershire or elsewhere in the UK, online auctions are a modern and efficient method for buying and selling a house. If you’re looking to sell your property quickly and reliably, or want to purchase a property at auction, we encourage you to get in touch to discuss with the Auction House Leicestershire team. We undertake online and livestream property auctions and are experienced in getting the best results for both buyers and sellers alike.
To register for Auction updates and check out our forthcoming or previous sales, just go to www.auctionhouse.co.uk/leicestershire. Start your auction journey today with Readings Property Group and Auction House Leicestershire.
You may also be interested in reading Why You Should Sell Your House at an Online Property Auction.
